BACKGROUND OF THE STUDY
STATEMENT OF THE PROBLEM
Pizza hut Thailand has regrettably experienced a disappointing same-store sales growth which declined by 1%, including a 3% decline in markets outside of Thailand; parent company Yum Brands said on Wednesday. Sept. 30, 2014.
Yum CEO Greg Creed said the company was “disappointed” by Pizza Hut’s Thailand results. “We have work to do around same-store sales growth,” he said on the company’s third quarter earnings call Wednesday morning. This has unfortunately continued to be the case in recent times and has negatively affected customer patronage and by extension the organizational growth and development of pizza hut Thailand.
INTENTION AND REASON FOR THE STUDY
The cardinal intention/reason for the study is to assess the impact of sales promotion strategies on customer patronage at pizza hut retailing outlets with the sole aim of improving customer patronage and ensuring organizational growth and development.
The major purpose of this study is to examine the impact of sales promotion strategies on customer’s patronage. Other general objectives of the study are:
- To examine the practice of the sales promotion that has great impact on consumer’s behavior.
- To examine whether non-acceptability of sales promotion to the targeted market have any effect on customers’ patronage.
- To examine the impact of sales promotion strategies on customer’s patronage in Pizza hut, Thailand.
- To examine whether sales promotion can serve as the major sustenance of short-term sales strategy in Pizza hut, Thailand.
- To examine the relationship between sales promotion strategies and customer patronage in Pizza hut, Thailand.
- To assess the contribution and efforts of sales promotion to improve the sales of Pizza hut.
ASSUMPTIONS OF THE RESEARCH
The study was based on the assumption that improvement in the customer patronage and thus organizational growth at pizza hut retail outlets is dependent on the sales promotion strategies put in place which basically is to enable employees to show certain skills and attitude in the use of concepts that describe honesty, discipline, obedience, orderliness, discipline, diligence.
SCOPE OF THE RESEARCH
This research is based on impact of sales promotion strategies on customer’s patronage (a case study of Pizza hut). This study will focus on ways of improving customer patronage through the application of certain sales promotion of certain sales promotion strategies that would be explored in this work.
BENEFITS OF THE STUDY
The findings of this study will have a number of significant implications. Both the young and the old will gain a lot of things from this work. This research would be significant to understand the influence of the promotions on the consumer’s behaviour. The study would determine the relevant short-term marketing strategy that would have greater impact on increase in sales volume and market share. The outcome this study would be relevant to different companies to determine the various factors that influence the consumer’s purchase decisions and adjust their sale promotion strategies accordingly. It would also help the firms to utilize their resources in optimum way and increase profitability and the market share. This study would determine the importance of understanding of consumer’s buying decision and their dynamic attitude before making decision regarding the sales promotion and the implication of the consumer’s behaviour on sales.
LIMITATIONS OF THE RESEARCH
Financial constraint– Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
Time constraint– The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.
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